What were the main drivers of Amgen's revenue growth in the first quarter of 2002?

Amgen's revenue growth was primarily driven by a 14% increase in product sales, totaling $908.6 million. Key products contributing to this growth included EPOGEN®/Aranesp™ (combined sales up 10% due to Aranesp™) and NEUPOGEN® (sales up 21%). Royalty income also increased by 31%.

How did the issuance of convertible notes impact Amgen's financial position?

On March 1, 2002, Amgen issued $3.95 billion in 30-year zero-coupon convertible senior notes, which provided a significant boost to its liquidity. This resulted in a substantial increase in cash and cash equivalents, which grew from $689.1 million at the end of 2001 to $2,981.2 million by March 31, 2002. These proceeds are intended for general corporate purposes, including acquisitions, share repurchases, capital expenditures, and working capital.

What is the status of Amgen's proposed acquisition of Immunex Corporation?

Amgen has a definitive agreement to acquire Immunex Corporation for an estimated $17.7 billion, to be accounted for as a purchase. Each Immunex share would be converted into 0.44 shares of Amgen common stock and $4.50 cash. The transaction is expected to close as early as June 2002, pending shareholder and regulatory approvals. Several legal proceedings related to this merger are ongoing, though Amgen believes they will not have a material adverse effect on its financial statements.

What are Amgen's recent product developments and future outlook?

Amgen received regulatory approval for Neulasta™ in January 2002 and launched it in April 2002, a new white blood cell booster. Kineret™, for rheumatoid arthritis, also received U.S. approval in November 2001 and EU approval in March 2002. The company anticipates that future growth in its anemia business will be driven by Aranesp™, while NEUPOGEN®/Neulasta™ demand depends on market penetration, pricing, and competitive products. The company is also assessing additional investment for new product launches.

AMGN 10-Q Quarterly Report Q1 FY2002 — Revenue, Net Income, EPS

Summary

Amgen Inc. reported strong financial performance for the first quarter ended March 31, 2002, with total revenues growing 12% year-over-year to $1,008.5 million. This growth was primarily driven by a 14% increase in product sales, reaching $908.6 million, with notable contributions from EPOGEN®/Aranesp™ and NEUPOGEN® sales. Net income also saw a healthy increase of approximately 11.5% to $340.9 million, translating to diluted earnings per share of $0.32. The company continues to invest in research and development, though R&D expenses saw a slight decrease year-over-year. Selling, general, and administrative (SG&A) expenses increased by 25%, reflecting investments in marketing and new product launches. Amgen also significantly strengthened its liquidity position, with cash and cash equivalents more than quadrupling to $2,981.2 million, largely due to a substantial issuance of convertible notes.

Key Highlights

1Total revenues increased 12% to $1,008.5 million for the quarter ended March 31, 2002.
2Product sales grew 14% to $908.6 million, driven by EPOGEN®/Aranesp™ and NEUPOGEN®.
3Net income rose approximately 11.5% to $340.9 million, with diluted EPS of $0.32.
4Cash and cash equivalents significantly increased to $2,981.2 million due to a large convertible note issuance.
5Amgen issued $3.95 billion in 30-year zero-coupon convertible senior notes.
6The company is proceeding with its proposed $17.7 billion acquisition of Immunex Corporation, expected to close as early as June 2002.
7SG&A expenses increased 25% reflecting investments in marketing and new product launches.

AMGEN INC Quarterly Report for Q1 Ended Mar 31, 2002

Summary

Key Highlights

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